Budget Adjustment. Document Overview:

Transcription

1 Budget Adjustment Document Overview: A Budget Adjustment (BA) is used to record both income and expense transaction changes against an existing budget (current budget). Each budget adjustment document will modify the current budget within an account, as opposed to the beginning budget, which is created at the beginning of the fiscal year through the Budget Construction (BC) process for the majority of accounts. Some subfunds are excluded from the BC process. It is important to understand that the budget in an account is used for two different purposes depending on whether the account resides in a budget based subfund or a cash based subfund. Budget Based Accounts: For State Appropriated subfunds: EG, PVM, EXPSTA, RARSP, EXTEN, CSFS and COURSE, the budget represents spending authority and the account balance is calculated by taking expense budget (less) actual expenses. Most state appropriated accounts do not have income and expense budgets within the same accounts. Cash Based Accounts: For Cash based subfunds, budget is established to represent a projected budget and serve as a management tool. The account balance is calculated by taking assets (less) liabilities. Most cash based accounts have both the income and expense budget within the same accounts. A BA document is normally used for the following: Move budget after the fiscal year begins into accounts that did not have budget established during the BC process Move budget between existing accounts for cost share or start up accounts Move spending authority between accounts in the same subfund (with the exception of the Income Stream Functionality) o Income Stream Functionality allows for budget to be moved into a different sub fund o These are the subfunds that allow movement between them EG, PVM, EXPSTA, EXTEN or CSFS o The KFS system creates a Transfer of Funds behind the scenes that properly adjusts the cash between the two subfunds Move budget from one object code or sub-object code to another in a single account Move budget from an account to a sub-account Revise budgets in an EG miscellaneous revenue account and its associated expense account Establish current budget in a new account created during the fiscal year 1

2 This document has a From/Decrease section and a To/Increase section. When moving budget from one account to another, the account that the budget is moving out of goes in the From/Decrease section and the account the budget is moving into belongs in the To/Increase section. When moving budget out of an account ( From/Decrease side of the document) the amount must have sufficient funds to do so. If the account is in deficit or the document puts the account in deficit the BA will be disapproved by the Budget Office or Sponsors Programs (if the account is within the SPONPR subfund). To be able to create this document the user must have security to Role 54 in Kuali. The primary users of this document are business officers within the colleges and divisions as well as departmental accountants within the university. How to Complete the Document: Complete the Document Overview section by adding a brief description of what is being done, then expand on it in the Explanation field. The Accounting Lines section is where the user inputs what account and object code the budget needs to decrease or increase from. CSU Fort Collins expense object codes must be Budget Pool Object Codes. Use this link to view all the available budget pool object codes. 2

3 It is recommended supporting documentation be attached to the transaction for an audit trail. It is required it be in PDF format within the Notes and Attachments section. The documentation can be an , spreadsheet or document like an MOU, etc. that further explains why the adjustment is needed and answers any questions related to the transaction being submitted so the reviewer and approvers of the transaction get a clear understanding and eliminates the need to contact the initiator for further explanations. In the below screenshot it says copied from document which is autopopulated when a user copies another like document. The copy feature is very beneficial when a KFS user has a reoccurring document that they have to submit every month or every year. They can copy everything over from the prior document except for the explanation and notes and attachments sections. The copy feature also has the perk of keeping a document trail for the history of that document. Document Routing: This document routes to the Fiscal Officer, Organization approver, Division Approver (only if document is over $10,000) and Budget Office. If the document has an account that is in the SPONPR subfund it will only route to the Sponsored Program Reviewer instead of the Budget Office. The document routes to the fiscal officer and organization s approvers based on the ownership of the account. The Budget Office is the final approval. They validate budget pool object codes, determine if sufficient funds are present in the account where budget is being taken and if appropriate documentation is included. 3

4 Document Exceptions/Restrictions: Below are the list of parameters related to the BA document. If the Constraint Code is A it means Allowed and if D it means Disallowed. Below are the list of allowed parameters: 1. Cross Income Stream General Ledger Pending Entry (GLPE) Transfer for Fund Group A onlyallows a BA to be created across subfunds within the Fund Group A 2. GLPE Generate Transfer Indicator allows the transfer of fund general ledger pending entries on the budget adjustment document 4

5 3. GLPE Income Transfer Object Code-This allows object code 9920 to be charged behind the scenes when a BA is created Below is the explanation of these restrictions: 1. Cross Income Stream GLPE Transfer, excludes subfunds COURSE, 1COURS, RARSP and 1RARSP these sub funds are in Fund Group A which is the discussed in #1 above. However, this disallow means these 4 subfunds, part of Fund Group A, are not allowed to be used on a BA document with other subfunds. They can only be used with like subfunds (i.e. RARSP to RARSP). 2. Restricts the use of object codes 2000, 2100, 2200, 2300, 2400, 2500, 2600, 2700, 5752, 5753, 5754, 5756, 9800, 9801, 9803, 9805, 9807, 9901, 9903, Restricts the use of Object Sub Types of a. AM-Art & Museum b. AP-Accounts Payable c. AR-Accounts Receivable d. BD-Building e. CA-Cash f. CC-Capital Construction g. CF-Capital Moveable Equipment-Federal Funded h. CM-Capital Moveable Equipment i. CP-Capital Assets j. CS-Capital Sponsor k. FP-Fringe Pool l. LA-Land m. LE-Leasehold Improvements n. LT-Long Term Payable o. PP-Prepaids p. SO-Software 5